Contact Energy's big push into renewable energy will hit shareholders in the pocket temporarily.
They have been told not to expect a capital return from their shares, because the company is planning to invest $2 billion in green energy schemes.
Spokesman Jonathan Hill says Contact is particularly excited about plans for additional geothermal generation in the Taupo region.
He says geothermal energy is the only form of renewable energy that does not depend on the weather, and will make a significant contribution to a secure electricity supply.
Hill says the steam will be drawn from the Waiaraki and the Tauharra steam fields.
Sites for four big wind farms are also being discussed.
Hill says the company has been looking at renewable energy for some time, and needs to bring on new generation by the year 2012.
He says the company believes up to 700 megawatts of power can be generated at two sites it is already negotiating for.
